'EATING OUT' IS BITING INTO AUSTRALIAN RETAILERS

SYDNEY, Australia (FNS) -- Australians are spending more of their food dollars at fast-food outlets and restaurants, and the nation's supermarkets stand to lose a substantial portion of their customers' patronage as a consequence, according to a new study.

problems for marketers of branded food products over the next decade.

Called "The Australian Foodservice Market," the study found that expenditures on eating out and on takeout, as a percentage of total spending on food, have increased from 21% in 1984 to 30% currently.

If, as expected, the trend continues, within 20 years one-half of all food expenditures will be for meals prepared outside the home, a situation similar to that in the United States, which is forcing American supermarkets to re-evaluate how they can offer consumers more meal solutions.

The study was comprised of a survey of more than 1,300 food-service operations in the institutional and commercial sectors, and a survey of 150 wholesalers and distributors.

It put the total value of funds spent on retail and commercial food services at $18 billion Australian ($14.2 billion U.S.). Out of this, some $13 billion Australian ($10.2 billion U.S.) were spent on eating out.

The number of meals consumed outside the home has increased by 57% over the past five years, according to the study.

In response to this trend, the number of food-service outlets has increased by 57% since 1982. Now, nearly 20,000 restaurants and cafes and more than 16,000 fast-food and takeout outlets are competing for customers, the research found.

The study also showed that consumption of beef in Australia continues to slide, while veal consumption has been leveling off.

Cheese, however, continues to attract growing consumer support.

Among vegetables, Australians are consuming more garlic, sweet corn, button squash, artichokes and snow peas; and are eating less squash, peas, spinach, onions and turnips, the research showed.

The study's author, industry specialist Sandro Mangosi, noted that supermarkets are waking up to the fact that a percentage of sales is moving next door to the restaurants.